RBS launches scheme to support new entrants to the Scottish farming sector

The new programme will see bank customers entering the industry given a face-to-face relationship manager, regardless of scale.

Non-Royal Bank customers will be offered up to three years of free mentoring from a sector specialist as they establish their business.

The programme, which is being announced on the eve of this year’s Royal Highland Show, is expected to help between 60 and 90 new businesses in Scotland each year and address some of the issues raised in a survey commissioned by the bank in January.

Harvesting the Future for Young Farmers, a survey of more than 500 young and potential new entrant farmers based in Britain by Royal Bank of Scotland.

It highlighted key concerns, including:

The research findings also show that young farmers hold huge economic potential and are driving significant enterprise trends in the agricultural sector. According to the report, almost 20,000 new diversification projects could be delivered by young farmers, generating £11,900 in additional income per farm.

Through this new programme, Royal Bank of Scotland will offer face-to-face banking support through our team of relationship managers to new entrants for three years.

The bank’s team of Business Growth Enablers will support new entrants by establishing Regional Mentoring Groups using our existing networks and partnerships including Women in Agriculture and Scottish Association of Young Farmers.

Business Growth Enablers will also act as a hub bringing external experts and new entrants together to provide support through education, day to day advice, strategic planning and thought leadership.

It is hoped the provision of specialist support will also lead to earlier identification of funding opportunities from external parties for new entrants.

Any non-Royal Bank of Scotland banked new entrants will be able to access mentoring through the bank’s commercial banking agricultural relationship team.

Alison Rose, CEO for Commercial and Private Banking for Royal Bank of Scotland, said: “Farming is vital to the Scottish economy and across Government, support bodies and customers the sentiment is clear – we must make entry to agriculture easier.

“Many mainstream banks operating in the sector have face to face relationship criteria which are outwith the scope of most young farmers. This means many do not have access to specialised relationship managers who understand the sector and can use their experience to guide their decision making.

“This programme, which will provide support for all new entrants in Scotland, aims to address these issues. Through our Business Growth Enablers and using our networks and relationships, we can create environments where knowledge and ideas can be shared and collective support can be fostered.

“Bringing in a younger generation will help stimulate new ideas and implement change in an industry that has been dominated by tradition. It is crucial that we do this.”